What is straight-line depreciation?

Straight-line (SL) depreciation spreads the depreciable cost evenly across every year of the asset's useful life. Annual expense = (Cost − Salvage) / Useful Life. It is the simplest and most commonly used method.

What is declining balance depreciation?

Declining balance (DB) applies a fixed percentage to the remaining book value each year, resulting in higher depreciation in early years. Double-declining balance (DDB) uses twice the straight-line rate. The book value cannot fall below the salvage value.

What is the sum-of-years-digits method?

The sum-of-years-digits (SYD) method is an accelerated approach. It multiplies the depreciable base (Cost − Salvage) by a decreasing fraction each year. The denominator is the sum of all year numbers (e.g., for 5 years: 1+2+3+4+5 = 15). Higher depreciation occurs in the earlier years.

Which method should I use?

SL is simple and predictable, ideal for assets that wear evenly. DB and DDB suit assets that lose value quickly (vehicles, tech). SYD is a middle ground — accelerated but not as aggressive as DDB. Consult a tax advisor for the best choice for your situation.

Can the book value go below the salvage value?

No. All three methods stop depreciating once the book value reaches the salvage value. For declining balance, the last year's depreciation is adjusted to bring the book value exactly to salvage.

Depreciation Calculator

Name: Depreciation Calculator
Availability: InStock
Author: Nham Vu

Enter asset cost, salvage value, and useful life, then choose a depreciation method to get a full year-by-year schedule with annual expense and book value.

Asset Details

Asset Cost ($)

Salvage Value ($)

Useful Life (years)

Depreciation Method

Straight-Line (SL) Declining Balance (DB) Sum-of-Years-Digits (SYD)

Enter asset details and click Calculate to see the depreciation schedule.

Total Depreciation

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Avg / Year

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Salvage Value

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Method

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Year-by-Year Depreciation Schedule

Year	Book Value (Start)	Depreciation	Accum. Depreciation	Book Value (End)

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Summary

Enter asset cost, salvage value, and useful life, then choose a depreciation method to get a full year-by-year schedule with annual expense and book value.

How it works

Enter the original cost (purchase price) of the asset.
Enter the salvage value — what the asset is expected to be worth at the end of its useful life (enter 0 if none).
Enter the useful life of the asset in years.
For declining balance, choose a rate multiplier: 1x (declining balance) or 2x (double-declining balance, DDB).
Select the depreciation method: straight-line, declining balance, or sum-of-years-digits.
Click Calculate to see the full year-by-year depreciation schedule and summary totals.

Use cases

Planning annual depreciation expense for equipment, vehicles, or machinery.
Comparing how different depreciation methods affect book value over time.
Preparing financial statements or tax filings that require a depreciation schedule.
Evaluating the impact of accelerated depreciation on early-year expenses.
Estimating an asset's remaining book value at any point in its useful life.
Teaching accounting students the difference between SL, DB, and SYD methods.

Frequently Asked Questions

Related tools

Straight Line Depreciation Detail Declining Balance Depreciation Sum Of Years Depreciation Roi Calculator

Last updated: 2026-05-23 · Reviewed by Nham Vu